Audi CEO detained in diesel emissions case

The reason for the arrest was because of a possible risk that he could suppress evidence in the ongoing investigation of alleged fraud and false advertising, according to the Munich prosecutors office, stated a Reuters report.

The emissions scandal dates back to September 2015 when VW admitted using illegal software to cheat United States emissions tests on diesel engines.

Munich prosecutors searched Stadler's private residence as part of their investigation of suspected fraud and indirect improprieties with documents.

Just last week, Volkswagenagreed to pay a 1 billion-euro fine imposed by German prosecutors for cheating to get around diesel-emissions regulations. "The hearing to determine whether he will be remanded is ongoing".

German news agency dpa reported that prosecutors made a decision to seek Stadler's arrest due to fears he might try to evade justice.

Cars sold in Europe by Volkswagen group were believed to be equipped with a software that automatically turned off emissions controls during driving, flouting several pollution control laws. Around 11 million vehicles from Audi are allegedly fitted with the emission manipulation devices.

Volkswagen has pleaded guilty to the criminal charges pressed against the company where two managers are serving prison time in US.